Senlac, William Macklowe sign $142.9M construction loan with Sumitomo for new dev project in Park Slope

Senlac Ridge Partners and William Macklowe Company through the entity 120 Jv Acq LLC as borrower signed a new construction loan with lender Sumitomo Mitsui Trust Bank through the entity Sumitomo Mitsui Trust Bank, Limited, New York Bran valued at $142.9 million for the retail building (K1) at 120 5th Avenue in Park Slope, Brooklyn. There are two new building projects filed for the parcel.
The deal closed on October 20, 2022 and was recorded on November 1, 2022.
The borrowers bought the property on April 24, 2020, for $59.4 million. The signatory for Senlac Ridge Partners and William Macklowe Company was David T. Welsh and William S. Macklowe.

The property

The 120 5th Avenue parcel has frontage of 360 feet and is 190 feet deep with a total lot size of 70,008 square feet. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $10 million. The most recent loan totaled $18 million and was provided by 10-120 5ave Lender, LLC on March 22, 2021.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has not received any significant violations in the last year.

Development

On the lot, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 175,393 square feet. The largest is a new building project for a 120-unit, 123,381 square-foot R-2 building developed by Jesse Wark with plans filed October 10, 2017 and it has not been permitted yet. The second largest is a new building project for a 40-unit, 52,012 square-foot R-2 building developed by Jesse Wark with plans filed October 10, 2017 and it has not been permitted yet.

The neighborhood

In Park Slope, the bulk, or 36 percent of the 9.8 million square feet of commercial built space are walkup buildings, with mixed-use buildings next occupying 26 percent of the space. In sales, Park Slope has 1.7 times the average sales volume among other neighborhoods with $579.3 million in sales volume in the last two years and is the 9th highest in Brooklyn. For development, Park Slope has had very little major development activity relative to other neighborhoods.It had 520,800 square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of seven of the 14 commercial properties representing 88,670 square feet of the 117,770 square feet. The largest owner is Senlac Ridge Partners, followed by Ernest Schemitsch and then Greenbrook Partners.
On the tax block, there were four new building construction projects totaling 244,077 square feet. The largest is a 120-unit, 123,381-square-foot R-2 building developed by Jesse Wark with plans filed October 10, 2017 and permitted June 8, 2022. The second largest is a 40-unit, 52,012-square-foot R-2 building developed by Jesse Wark with plans filed October 10, 2017 and permitted June 8, 2022.

The majority, or 42 percent of the 117,770 square feet of built space are retail buildings, with mixed-use buildings next occupying 25 percent of the space.

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